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Refinance Comparison:
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The Refinance Mortgage Comparison Calculator helps you determine whether refinancing your mortgage makes financial sense by comparing your current mortgage costs with potential new mortgage costs, accounting for any associated fees.
The calculator uses the following formula:
Where:
Explanation: The calculation shows your net savings after accounting for refinancing costs. A positive number indicates savings, while a negative number means refinancing would cost you more.
Details: Comparing refinance options is crucial for making informed financial decisions about your mortgage. It helps determine if the potential savings outweigh the costs of refinancing.
Tips: Enter all amounts in USD. The Old Total should include all remaining payments on your current mortgage. The New Total should include all payments on the proposed new mortgage. Fees should include all closing costs and other refinancing expenses.
Q1: What should be included in the Old Total?
A: Include all remaining principal and interest payments on your current mortgage. You may also include other costs like PMI if applicable.
Q2: What fees should be included?
A: Include all closing costs, application fees, appraisal fees, title insurance, and any other costs associated with refinancing.
Q3: How accurate is this calculator?
A: This provides a basic comparison. For precise calculations, consult with a mortgage professional who can account for all variables.
Q4: Should I refinance if the savings are small?
A: Consider how long you plan to stay in the home and whether the savings justify the effort of refinancing.
Q5: Are there tax implications to consider?
A: Yes, refinancing may affect your mortgage interest deduction. Consult a tax professional for advice specific to your situation.